Mid-market private equity firm Sterling Investment Partners has closed its fourth fund on $934m, slightly exceeding its initial target of $900m.
The new fund has already been tapped, with Sterling deploying $250m across Anser Advisory, Camp Facility Services and Kendall Vegetation Services & Xylem Tree Experts.
Sterling partner James Soldano explained that Sterling Investment Partners IV will continue the firm’s strategy of partnering with dynamic middle market distribution and business services companies.
Speaking on the fund, Sterling managing partner and co-founder Bill Macey said, “We have continued to grow by investing in our people and adding talented professionals, and plan to continue to do so with the successful closing of SIP IV.”
Since it was founded in 1991, Sterling has overseen the investment of over $2.6bn in equity across 39 platform investments and 130 add-on acquisitions and multiple greenfield expansions.
Based in Connecticut, the private equity firm targets ‘recession resistant segments’, including building and facilities services, essential and outsourced services, consumable products, and after-market and MRO parts.
It also seeks companies that have revenue between $50m – $500m, an EBITDA ranging from $10m – $50m and an enterprise valuation between $150m – $400m.
Simpson Thacher & Bartlett was counsel to SIP IV. Eaton Partners acted as global placement agent.
Sterling kicked off 2023 with the appointment of a new chief financial officer.
In other recent fund news, New York-based investment firm Garnett Station Partners hit the $850m hard cap for its fourth fund.
The firm was raising the vehicle for just six months.
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